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Bobtail Insurance – A Must-Have for Power Only Carriers

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  • GLI Dispatch Services
  • July 17, 2025

Bobtail Insurance – A Must-Have for Power Only Carriers

In the ever-evolving landscape of freight transportation, power only carriers play a vital role by hauling trailers they don’t own, offering flexibility and reduced capital investment. However, this operating model comes with a unique set of risks, particularly when the truck is driven without a trailer—known as “bobtailing.” This is where bobtail insurance becomes a crucial safety net.

Understanding Bobtail Insurance

Bobtail insurance is a type of commercial auto liability policy that covers truck drivers when they operate their tractors without trailers. This typically includes trips after dropping off a load, while traveling to pick up a new trailer, or driving between assignments without being under dispatch.

Even when not actively hauling freight, accidents can still happen—collisions, injuries, or property damage. Bobtail insurance fills a liability gap not covered by the motor carrier’s policy during these in-between moments.

Bobtail Insurance vs. Non-Trucking Liability (NTL) Insurance

While they’re often confused, bobtail and non-trucking liability insurance serve different purposes.

Bobtail insurance applies when you’re driving the truck for business-related reasons but without a trailer—such as between dispatches or returning from a drop-off. In contrast, NTL insurance covers the truck when used for personal, non-business purposes—like running errands or driving home for a weekend.

A key point: NTL doesn’t cover business-related travel, even if there’s no load or trailer involved. For power only carriers who frequently operate without trailers between assignments, bobtail insurance is the correct form of protection.

Why Bobtail Insurance Is Essential for Power Only Carriers

Power only trucking arrangements are attractive for many owner-operators. But they also increase the time spent bobtailing, especially during transitions between jobs. Most motor carriers only provide liability coverage when you’re under dispatch. If an incident occurs outside that window, you’re financially exposed.

Bobtail insurance safeguards you from out-of-pocket liability costs during these uncovered trips. It also ensures compliance with lease agreements or carrier requirements, many of which mandate proof of such coverage. More importantly, it provides financial protection in case of an accident—covering medical expenses, property damage, and legal defense costs. Without it, you could be personally responsible for thousands in damages.

What Bobtail Insurance Covers - and What It Doesn't

The main focus of bobtail insurance is liability. It protects you if you’re at fault in an accident while operating your truck without a trailer. Coverage typically includes:

  • Bodily Injury: Pays for medical expenses for others injured in an accident.

  • Property Damage: Covers damage to other vehicles, property, or structures.

  • Legal Fees: Includes court and attorney costs if you’re sued.

However, bobtail insurance does not extend to:

  • Physical damage to your own truck (you’ll need separate physical damage coverage).

  • Cargo protection (that requires cargo insurance).

  • Personal non-business use of the truck (which falls under NTL insurance).

Who Needs Bobtail Insurance?

If you’re a leased owner-operator or a power only carrier using your own tractor to pull third-party trailers, bobtail coverage is often a necessity. It’s especially important if your operations involve:

  • Driving without a trailer between jobs.

  • Traveling to or from a drop-off point.

  • Situations where your lease contract requires additional liability coverage.

Even if bobtailing isn’t a daily part of your job, all it takes is one accident to face a major financial burden. It’s better to be insured than assume the carrier’s policy will protect you.

Cost of Bobtail Insurance

Compared to full commercial truck insurance, bobtail coverage is generally affordable. Premiums usually range between $25 and $60 per month, depending on several risk factors:

  • Driving Record: Fewer incidents mean lower premiums.

  • Truck Value: Newer or more expensive tractors might cost more to insure.

  • Frequency of Bobtailing: The more you drive without a trailer, the higher the risk.

  • Operating Region: Urban areas with heavy traffic often increase rates.

  • Coverage Limits: Higher liability limits increase your premium but offer more protection.

Despite the low cost, the protection it offers is significant, especially when considering the cost of medical claims or lawsuits resulting from an accident.

How to Buy the Right Policy

Purchasing the right bobtail insurance starts with understanding your specific operational needs and lease obligations. Here are some best practices when shopping for a policy:

  • Review Your Lease Agreement: Many require at least $1 million in liability coverage.

  • Choose a Specialized Insurer: Work with companies that focus on commercial trucking.

  • Bundle Wisely: You can often save money by combining bobtail insurance with cargo, physical damage, or NTL policies.

  • Compare Quotes: Don’t settle for the first quote—evaluate options from multiple providers.

  • Keep Proof of Insurance Ready: Maintain a physical and digital copy of your Certificate of Insurance (COI), as many brokers or carriers may request it before dispatching loads.

Common Mistakes to Avoid

Many drivers mistakenly believe their carrier’s insurance covers all circumstances. However, unless you are under dispatch, that’s usually not the case. Avoid these frequent pitfalls:

  • Relying on the carrier’s policy without confirming dispatch terms.

  • Purchasing NTL instead of bobtail coverage, thinking both serve the same purpose.

  • Letting the policy lapse—even one day without coverage can put you at massive risk.

  • Underinsuring—having inadequate liability limits could violate your contract or leave you financially exposed in a major accident.

Where to Get Bobtail Insurance

You can obtain bobtail insurance through commercial truck insurance brokers or directly from companies that specialize in the transportation industry. Look for providers that offer:

  • Quick quote generation and fast issuance of proof of coverage.

  • Expertise in FMCSA and DOT compliance.

  • Flexible billing options.

  • Positive reviews from truckers and fleets alike.

Before applying, have your vehicle information, driving history, and lease agreement ready to speed up the process.

Final Thoughts

For power only carriers, operating without a trailer isn’t rare—it’s part of the job. And every mile driven without cargo still carries risk. Bobtail insurance exists to protect you in those moments. It’s not just about meeting contract requirements; it’s about safeguarding your livelihood.

A single accident without the proper insurance could result in thousands of dollars in losses and potentially end your business. For less than a few dollars a day, bobtail insurance delivers peace of mind, legal compliance, and financial protection. If you’re a power only carrier or leased owner-operator, don’t wait for a disaster to realize its importance. Get covered today.

GLI Truck Dispatch Services offers one of the best truck dispatch services to owner operators and carriers across USA. We offer other back-office solutions such as compliance and accounting to carriers in addition to our truck dispatch services to help our carriers succeed in this competitive yet rewarding trucking industry. At GLI, our truck dispatchers don’t just dispatch, they go the extra mile to help build relationships to help carriers grow their business. Its where professionalism meets quality. Visit www.glitruckdispatchservices.com to learn more about our processes and how our method of truck dispatching can help you succeed and grow your business. 

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